Caribbean Utilities Company, Ltd. is listed for trading in United States
dollars on the Toronto Stock Exchange.
GRAND CAYMAN, Cayman Islands, May 8, 2014 /CNW/ - Caribbean Utilities
Company, Ltd. (TSX: CUP.U) ("CUC" or "the Company") announced today its
unaudited results for the First Quarter ended March 31st 2014 (all figures in United States dollars).
Net earnings for the three months ended March 31, 2014 ("First Quarter
2014") totalled $3.4 million, an increase of $0.5 million when compared
to $2.9 million for the three months ended March 31, 2013 ("First
Quarter 2013"). This increase was driven by higher electricity sales
revenues and lower depreciation costs. These items were partially
offset by higher consumer service costs and finance charges.
After the adjustment for dividends on the preference shares of the
Company, earnings on Class A Ordinary Shares for the First Quarter 2014
were $3.3 million, or $0.11 per Class A Ordinary Share, an increase of
$0.5 million from the $2.8 million, or $0.10 per Class A Ordinary Share
for the First Quarter 2013.
Sales for the First Quarter 2014 totalled 130.7 million kilo-watt hours
("kWh"), an increase of 5.2 million kWh, or 4%, in comparison to 125.5
million kWh for the First Quarter 2013. First Quarter 2014 kWh sales
were positively impacted by growth in customer numbers and warm weather
conditions that affected customer air-conditioning load more
significantly when compared to the same period last year. The average
monthly temperature for the First Quarter 2014 was 80.0 degrees
Fahrenheit as compared to average monthly temperature of 79.3 degrees
for First Quarter 2013.
The total number of customers at the end of the First Quarter 2014 was
27,438 customers, a 1.3% increase when compared to 27,086 customers at
the end of the First Quarter 2013.
President and CEO, Mr. Richard Hew, says, "The Company continues to
invest in the infrastructure which is required to meet current and
future demand as needed, while also working to control its operating
expenditures. CUC is committed to ensuring that its customers are
provided with a safe and reliable electricity service at least cost. "
Capital Expenditures totaled $6.5 million and reliability of service as
measured by the average service availability index, was 99.98% for the
First Quarter 2014.
The Electricity Regulatory Authority (ERA) cancelled the solicitation
process for firm generation in July 2013. This process had been
initiated by a Certificate of Need (CON) issued by CUC in November
2011. The CON was driven primarily by the upcoming retirement of some
of the Company's generating units due to begin this year.
The ERA has since restarted the process and announced the listing of
qualified bidders resulting from its solicitation for Statements of
Qualifications. Bids are due in mid-May and an announcement of the
winning bidder is expected to be made in July 2014 for 36 MW of firm
capacity to be on-line by June 2016.
In the meantime, the ERA and CUC have agreed to a temporary generation
plan which will allow CUC to meet the expected reserve margin
requirements for the peak periods, and until the firm capacity needs
can be met.
CUC has secured the rental supply of approximately 7.5 MW of mobile
generation for this summer. This will complement existing generation,
satisfy ongoing customer needs and help to ensure a continued reliable
supply of power to consumers.
During the quarter under review the Company also initiated a technical
interconnection study for one of the two proposed large-scale solar
energy projects. CUC anticipates that by the end of 2015 it will
connect 13 MW of renewable energy capacity from developers who will
finance, construct, own and operate these facilities.
Mr. Hew added, "CUC believes there are economic and environmental
benefits from engaging renewable energy sources to displace some of the
diesel fuel that our generators presently consume. Wind and solar are
non-firm power and will need to be supported by firm power sources such
as diesel generation."
CUC's First Quarter results and related Management's Discussion and
Analysis ("MD&A") for the period ended March 31st 2014 are attached to this release and incorporated by reference and can
be accessed by clicking the link at the end of this release.
The MD&A section of this report contains a discussion of CUC's unaudited
2014 First Quarter results, the Cayman Islands economy, liquidity and
capital resources, capital expenditures and the business risks facing
the Company. The release and First Quarter MD&A can be accessed at www.cuc-cayman.com (Investor Relations/Press Releases) and at www.sedar.com.
CUC provides electricity to Grand Cayman, Cayman Islands, under an
Electricity Generation Licence expiring in 2029 and an exclusive
Electricity Transmission and Distribution Licence expiring in 2028.
Further information is available at www.cuc-cayman.com.
Certain statements in the MD&A, other than statements of historical
fact, are forward-looking statements concerning anticipated future
events, results, circumstances, performance or expectations with
respect to the Company and its operations, including its strategy and
financial performance and condition. Forward looking statements include
statements that are predictive in nature, depend upon future events or
conditions, or include words such as "expects", "anticipates", "plan",
"believes", "estimates", "intends", "targets", "projects", "forecasts",
"schedule", or negative versions thereof and other similar expressions,
or future or conditional verbs such as "may", "will", "should", "would"
and "could". Forward looking statements are based on underlying
assumptions and management's beliefs, estimates and opinions, and are
subject to inherent risks and uncertainties surrounding future
expectations generally that may cause actual results to vary from
plans, targets and estimates. Some of the important risks and
uncertainties that could affect forward looking statements are
described in the MD&A in the section labeled "Business Risks" and
include but are not limited to operational, general economic, market
and business conditions, regulatory developments and weather. CUC
cautions readers that actual results may vary significantly from those
expected should certain risks or uncertainties materialize, or should
underlying assumptions prove incorrect. Forward-looking statements are
provided for the purpose of providing information about management's
current expectations and plans relating to the future. Readers are
cautioned that such information may not be appropriate for other
purposes. The Company disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of new
information, future events or otherwise except as required by law.
PDF available at: http://stream1.newswire.ca/media/2014/05/08/20140508_C7494_DOC_EN_40145.pdf
SOURCE: Caribbean Utilities Company, Ltd.
For further information:
Contact: Letitia Lawrence
Vice President Finance and Chief Financial Officer
Phone: (345) 914-1124